Thursday, May 24, 2007
Now it's Leg 1 of Bull Break, on the TREND Chart
It's just amazing how the market always hoodwinks the Bulls, and the Bears at the same time. The way in which Leg 1 of Back Door Bull Break was quickly decimated, largely by the Globex Session's big upmove, quickly set the tone for a Bullish open. The upmove drew in the Bulls & frustrated the Bears with STOPs being hit. With both parties clearly frustrated(Bears), and involved (Bulls), the market simply turned on it's magic by creating a PRIME PPF of Resistance (1535.75) at 1535.50 (01:09am / S'pore Time). It was a 10 3/4 pt drop in less than 1 1/2 hrs, which immediately created Leg 1 of Bull Break. A slight reprieve from this drop came in the form of an Oscillation Challenge (TREND Chart) when PRICEs pulled back to 1530.50 at 02:58am / S'pore Time. By then, PRICE was ready to continue its drop & we then hit the day's low of 1524.00, going into the close. By all accounts, PRICE has yet to fail going down...so do expect to SHORT pullbacks, but with some caution as on the TRADING Chart, a possible 5 X Divergent Bottom & on the TREND Chart, a possible 2 x Divergent Bottom looks to be setting up.